The global bamboo packaging market is set to enjoy a valuation of US$ 480.3 Million in 2022, and further expand at a CAGR of 6.4% to reach US$ 895.1 Million by 2032. Sales of bamboo packaging are anticipated to bolster at a robust pace, as the top 5 providers contributed 25 to 30% of revenue share in 2021.
Based on the packaging types, the cups & straws segment is estimated to hold around 24% of the market value share by the end of 2032. This is due to the increasing demand for cups & straws by food service providers along with the adoption of sustainable packaging solutions.
The bamboo packaging market grew at a 4.0% CAGR in the historical period of 2015 to 2021, according to Future Market Insights (FMI). Growth in the market is underpinned by the growing trend of sustainable and cost-effective packaging solutions in diverse industries such as food & beverage, personal care, and others.
Rising consciousness towards increasing environmental concerns and pollution are one of the core reasons the demand for bamboo packaging is surging. Preference for sustainable packaging as compared to single-use plastic is also growing due to the stringent regulations pertaining to the use of plastic.
The bamboo packaging includes different packaging types such as cups & straws, bottles & jars, boxes & cartons, clamshells, tubes, mailers, barrels, crates, pallets, and others. Manufacturers are also spending resources on research and development to innovate new products and market their products in this packaging to woo consumers.
Initiatives from the government are supporting the cultivation of bamboo and packaging manufacturers are trying to substitute plastic packaging with bamboo packaging. Bamboo is considered to be a sustainable and cost-effective source as it aids in reducing carbon footprints.
With increasing global warming and the burgeoning use of plastic, the amount of plastic waste has surged across the globe. To curb this, governments across the globe and end users are putting a ban on the use of plastic packaging, resulting in increased sales of bamboo packaging. For instance, in 2018, India announced the launch of the Bamboo Mission to promote the use and conservation of bamboo and bamboo products.
What are the Factors Prompting the Adoption of Bamboo Packaging?
Need to Replace Plastic Packaging among End Users to Spur Sales
Due to the negative impact of plastic packaging on the environment, the need for sustainable packaging has increased. Bamboo is a natural material that can be used for packaging purposes in diverse industries. Manufacturers are moving away from disposable plastics and are adapting bamboo packaging as an alternative solution.
Bamboo packaging is the best alternative to plastic packaging as it is natural, biodegradable, and cheaper to produce. As bamboo has over 1000 species and can be cultivated in any rigid conditions, its easy availability has made it an easy and cost-effective solution to the plastic problem.
Bamboo produces nearly 35% more oxygen than other trees, which aids in reducing carbon footprints and is also biodegradable. Hence, manufacturers are using bamboo packaging in packaging products such as boxes, straws, pallets, etc. making it a perfect alternative to plastic packaging. Thus, the demand for bamboo packaging is driven up by the increasing demand as a replacement for plastic packaging in the various end-use industries.
Application from Food & Beverage to Create Remunerative Prospects
Packaging plays an important role in the food industry as it protects food items from the external environment and contamination. Food containers made from bamboo are ideal for food packaging, as they are biodegradable and a secure packaging option. Bamboo packaging is also good insulation, which makes it a packaging option for both hot and cold food items.
The biological qualities of bamboo make it a striking option for disposable items such as food wrappers, takeout containers, coffee cups, boxes, and straws. In addition, bamboo packaging does not leech any harmful substances into the food as compared to plastic or any other food packaging material. Hence, the demand for eco-friendly packaging from the food industry is enhancing the growth of the bamboo packaging market.
Country-wise insights
How is Demand for Bamboo Packaging Surging in the USA?
Need for Safe & Sustainable Packaging in Food Service Industry to Boost the Market
The USA bamboo packaging market is expected to create a growth opportunity of US$ 71.1 Million during the forecast period. Bamboo packaging is expected to witness significant growth in the USA market due to the growing food service sector in the USA As per the USA DEPARTMENT OF AGRICULTURE, in the year 2021, the food service industry and food retailing industries supplied food worth US$ 2.12 trillion.
In 2021, fast food and full-service restaurants accounted for around 70% sales out of all food sales. The growth of the food & food service industry is bolstering the growth of bamboo packaging in the country.
How will the Growth in Germany’s Bamboo Packaging Market Unfold?
Demand for Safe Packaging from Cosmetic Industry to Generate Higher Profits
FMI opines that bamboo packaging in Germany is estimated to grow at a rate of 4.8% CAGR during the forecast period. In Europe, Germany has witnessed significant growth in the bamboo packaging market as compared to other nations. According to Cosmetics Europe, Germany is considered to be the largest market for cosmetics and personal care.
Bamboo packaging is extensively used in the cosmetics industry as it is considered the most sustainable solution. In addition, it is used to safeguard the integrity of cosmetics products and is a cheaper packaging solution. Thus, the significant growth of the cosmetics & personal care industry is expected to create revenue-generating opportunities for bamboo packaging manufacturers.
Competitive Landscape
Key players operating in the global bamboo packaging market are focusing on expanding their capabilities and resources to meet the growing demand for sustainable packaging. They are also aiming for mergers and acquisitions strategies. Some of the key latest key developments by the key players are –
· In March 2022, Be Green Packaging expanded its packaging capabilities. They expanded their capabilities by including direct print to fibre and various packaging of geometric designs. This expansion would help the company in achieving packaging optimization and highly attractive packaging.
· In April 2021, Huhtamäki Oyj announced the acquisition of Jiangsu Hihio-Art Packaging Co. Ltd. This acquisition would help Huhtamaki strengthen its position as a leading food-packaging provider and would extend its portfolio in the Asian region.
